On October 24th, Friday at 8:30 PM, the U.S. September unadjusted CPI year-on-year figure will be released. You need to understand two points regarding this.



First, the publication status of this data may lean more towards which side, high recording or low recording, which will be the core judgment for bearish or bullish.

Second, what are the foreseeable impacts after the data is released, what is the degree of impact, is it high or low, and is it a short-term release or a long-term release?

In this regard, many people do not know where to start or how to break it down layer by layer, which leads to a guessing and gambling mentality. This may be the source of risk in your upcoming trades.

Here, if you don't want to be a gambling dog, you must prepare in advance, recording the CPI non-seasonally adjusted and seasonally adjusted sub-item data. Typically, you need to record these eight categories: Housing, Transportation, Food and Beverages, Medical, Education and Communication, Clothing, Entertainment, and Other Goods and Services. Record them in the way you are most familiar with, so that it is easy for you to review.

With these actual itemized data support, which can be viewed on the official website of the U.S. Bureau of Labor Statistics, you can roughly calculate the range of values that the CPI will be published.

The value range has been obtained, and its main purpose is to peek into the future interest rates of the Federal Reserve, as interest rates are the most direct factor affecting your trading. When interest rates are high, almost all products that can be frequently traded will decline, and when interest rates are low, the opposite is true. This is the core of your interpretation of CPI.

However, you must understand that interest rates are so important that policymakers cannot set them lightly. Those policymakers will also consider the employment and unemployment rates in society, as well as the development of the socio-economic situation, and then hold meetings to vote. Therefore, the importance of CPI data is hypocritical, just like when your dad hits you and scolds you; his core intention is to educate you. He can hit you with a smile or seriously whip you, but you must understand his true intention behind hitting you.

Alright, that's enough rambling for today. If you liked it, please follow.
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